Ending diagonal?

    Posted by rbreese on 2nd of Apr 2012 at 04:25 pm

    The market opened relatively flat today, pulled back a bit, and then rallied to new uptrend highs. The DOW, which had been lagging, also hit a new uptrend high. All clear? Not so fast. There is a fairly symmetrical wedge shaped pattern being displayed on the 10min SPX chart. The rally from the Int. wave iv low at SPX 1340 topped at 1414. Then the market had a 27 point pullback to SPX 1387. Another rally followed to SPX 1419, exactly 5 points above the previous high. Then another 27 point pullback to SPX 1392 followed that. Naturally this was 5 points above the previous low. Notice this wave movement: 1414-1387-1419-1392, is potentially forming an Int. fifth wave diagonal triangle. Today’s rally to SPX 1422 is just 2 points shy of completing this symmetrical pattern. With the SPX again running into that overhead trendline, (hourly chart), and an extremely overbought condition – with a negative divergence, we remain a bit cautious here.

    rbreese - did you listen

    Posted by steve on 2nd of Apr 2012 at 06:38 pm

    rbreese - did you listen to the weekend newsletter?  I began pointing out such a possible pattern over a week ago and it the first option discussed on the SPX 60 minute chart on Sunday. 

    I have cleaned it up abit to reflect today's move...again this is simply one option to monitor. 

    http://stockcharts.com/h-sc/ui?s=$SPX&p=60&yr=0&mn=2&dy=25&id=p54308012014&a=127088941&r=1333406270853&cmd=print

    Ending Diagonal

    Posted by sethbru on 2nd of Apr 2012 at 08:18 pm

    Steve,

    rbreese quoted TC's OEW daily update, and I really like his format since I only have time for a very brief daily summary. I prefer reading 2 well-written concise paragraphs on the major US index rather than trying to digest the charts you spend many hours of your  time preparing for us. I have told you that several times, yet you seem to ignore it. I am sure others disagree with me and prefer your charts, but if you really want to cater to your broad paying customer base, you should consider my request. I pay for your service, yet I get a more useful (for my needs) daily update from TC's site.

    Just my 2 cents worth. I

    Posted by wowten on 3rd of Apr 2012 at 12:09 am

    Just my 2 cents worth.

    I am new to this service precisely because of the detailed nightly newsletter.

    I came from another service that had a brief overview. 

    BPT is far superior for me.  I take the time to go through the info, and it really helps me better understand where the market is potentially headed.

     

     

    ditto wowten

    Posted by morgan8 on 3rd of Apr 2012 at 06:11 am

     

    it is the broad and in depth education i value from this service. mind you there is still more to learn like what is the difference between my government and china. i understand that in china the govenment plays a role(interferes) in every part of the business cycle and here goverment and free enterprise are completely seperate ......hahahaha.... i am still trying to understand this one and i think steve and matt should make more of an effort to explain this Wink

    but i continue to learn,,,,  like tonights lesson,,,, are you serious seth????? sorry man but it sounds like you are saying that confronted with a choice of two products you have chosen to buy the one you do not like, and having purchased it, you are now demanding it be turned into the one you do like.

     

    I did Steve but his

    Posted by rbreese on 2nd of Apr 2012 at 06:45 pm

    I did Steve but his work is 30 minute whereas yours is 60. Guess yours would be MORE significant if it broke out of your ending diagonal. Thanks

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